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DECISION No. 540/2004/QD-BKH OF JUNE 7, 2004 AUTHORIZING THE MANAGEMENT BOARD OF CHU LAI OPEN ECONOMIC ZONE, QUANG NAM PROVINCE, TO FORMULATE PROJECTS; RECEIVE AND CONSIDER PROJECT DOSSIERS; GRANT, ADJUST AND WITHDRAW INVESTMENT LICENSES, AND MANAGE ACTIVITIES OF FOREIGN-INVESTED PROJECTS IN CHU LAI OPEN ECONOMIC ZONE

THE MINISTER OF PLANNING AND INVESTMENT

Pursuant to the November 12, 1996 Law on Foreign Investment in Vietnam and the 2000 Law Amending and Supplementing a Number of Articles of the Law on Foreign Investment in Vietnam;

Pursuant to the Government's Decree No. 24/2000/ND-CP of July 31, 2000 detailing the implementation of the Law on Foreign Investment in Vietnam and Decree No. 27/2003/ND-CP of March 19, 2003 amending and supplementing a number of articles of Decree No. 24/2000/ND-CP;

Pursuant to the Regulation on Industrial Parks, Export-Processing Zones and Hi-Tech Parks, promulgated together with the Government's Decree No. 36/CP of April 24, 1997;

Pursuant to the Government's Decree No. 61/2003/ND-CP of June 6, 2003 defining the functions, tasks, powers and organizational structure of the Ministry of Planning and Investment;

Pursuant to the Prime Minister's Decision No. 233/1998/QD-TTg of December 1, 1998 on decentralization and authorization of the licensing of foreign direct investment projects;

Pursuant to the Prime Minister's Decision No. 108/2003/QD-TTg of June 5, 2003 establishing Chu Lai Open Economic Zone, Quang Nam province, and promulgating its Operation Regulation;

Pursuant to the Prime Minister's Decision No. 184/2003/QD-TTg of September 8, 2003 establishing the Management Board of Chu Lai Open Economic Zone, Quang Nam province;

Pursuant to the Prime Minister's Decision No. 43/2004/QD-TTg of March 23, 2004 approving the general planning on construction of Chu Lai Open Economic Zone, Quang Nam province;

At the proposals of the People's Committee of Quang Nam province in Report No. 1687/TTr-UB of September 15, 2003, Official Dispatch No. 2071/UB-KTM of November 18, 2003 and Report No. 166/TTr-UB of February 6, 2004,

DECIDES:

Article 1.-

1. The Management Board of Chu Lai Open Economic Zone, Quang Nam province, (hereinafter called the Management Board) shall act as the main body in guiding investors to invest in Chu Lai Open Economic Zone, which operate under the Operation Regulation of Chu Lai Open Economic Zone, Quang Nam province, promulgated together with the Prime Minister's Decision No. 108/2003/QD-TTg of June 5, 2003; the Regulation on Industrial Parks, Export-Processing Zones and Hi-Tech Parks, promulgated together with the Governments Decree No. 36/CP of April 24, 1997, and law provisions on foreign investment.

2. To authorize the Management Board to receive and consider project dossiers; grant, adjust and withdraw investment licenses to, and manage activities of, foreign projects for investment in Chu Lai Open Economic Zone prescribed in this Decision.

Article 2.- The consideration and grant of investment licenses to investment projects in Chu Lai Open Economic Zone, approved under the process of registration for investment licensing, shall be effected by the Management Board according to the provisions of this Decision.

Article 3.- To be licensed by the authorized Management Board, investment projects in Chu Lai Open Economic Zone, approved under the process of registration for investment licensing, must simultaneously meet the following conditions:

1. Being compatible with the Planning, Charter and Operation Regulation of Chu Lai Open Economic Zone, approved by competent authorities;

2. Being other than group-A projects as prescribed in Clause 1, Article 114 of the Government's Decree No. 24/2000/ND-CP of July 31, 2000, and supplemented and amended in Clause 26, Article 1 of the Government's Decree No. 27/2003/ND-CP of March 19, 2003;

3. Not falling in the fields where investment licensing is not decentralized as prescribed in Clause 2, Article 115 of the Government's Decree No. 24/2000/ND-CP of July 31, 2000, and supplemented in Clause 27, Article 1 of the Government's Decree No. 27/2003/ND-CP of March 19, 2003;

4. Being industrial or industrial-service projects and group-B projects capitalized at up to USD 40 million each, which fall under the deciding competence of the Ministry of Planning and Investment as prescribed in Clause 2, Article 114 of the Government's Decree No. 24/2000/ND-CP of July 31, 2000.

Article 4.-

1. Apart from the conditions prescribed in Article 3 of this Decision, projects subject to registration for investment licensing must also meet one of the following conditions:

a/ Export-processing enterprises with investment capital of up to USD 40 million each in industrial parks, export-processing zones, hi-tech parks and non-tariff areas belonging to Chu Lai Open Economic Zone;

b/ Industrial production enterprises with investment capital of up to USD 10 million each and industrial-service enterprises with investment capital of up to USD 5 million each in industrial parks, export-processing zones, hi-tech parks and non-tariff areas belonging to Chu Lai Open Economic Zone;

c/ Group-B projects with investment capital of up to USD 5 million each inside the tariff areas and outside industrial parks, export-processing zones or hi-tech parks belonging to Chu Lai Open Economic Zone;

d/ Projects with investment capital of up to USD 10 million and percentage of export products of 80% or more each inside the tariff areas and outside industrial parks, export-processing zones or hi-tech parks belonging to Chu Lai Open Economic Zone.

2. Dossiers of projects of registration for investment licensing shall comply with the provisions of Clauses 1 and 2, Article 106 of Decree No. 24/2000/ND-CP of July 31, 2000, and supplemented and amended in Clause 23, Article 1 of the Government's Decree No. 27/2003/ND-CP of March 19, 2003. Applications of registration for investment licensing shall be made according to Form 1, while their enclosed documents shall be made according to Forms 2b, 3b, 3c and 4b of Appendix II (not printed herein) to the Planning and Investment Ministry's Circular No. 12/2000/TT-BKH of September 15, 2000 guiding foreign investment activities in Vietnam. In cases where investment projects are on the lists of those subject to the elaboration of environment impact assessment reports, investors shall abide by the provisions of Circular No. 490/1998/TTBKHCNMT of April 29, 1998 of the Ministry of Science, Technology and Environment, guiding the elaboration and evaluation of environment impact assessment reports for investment projects, enclosed with project dossiers of registration for investment licensing.

3. The Management Board shall grant investment licenses when the investors' project dossiers of registration for investment licensing fully meet the conditions and procedures prescribed in Article 3 and Clauses 1 and 2, Article 4, of this Decision.

4. Within 15 working days after receiving the valid dossiers, excluding the time for investors to amend or supplement their dossiers of registration for investment licensing at the Management Board's requests, the Management Board shall grant investment licenses to the projects fully meeting the prescribed conditions.

All requests of the Management Board to investors for amendment and/or supplementation of the dossiers of registration for investment licensing or adjusted licenses shall be made within 7 working days after the project dossiers are received.

5. For investment projects not defined in Clause 1 of this Article, or group-B projects not yet included in the approved branch development plannings or product plannings, before making decisions to grant investment licenses, the Management Board shall have to send the projects' summaries to the Ministry of Planning and Investment, and consult the concerned ministries and/or branches on issues falling under their respective competence for consideration and approval.

The ministries and branches which are consulted on the projects, including on adjustment of investment licenses, shall have to give their written replies within 10 working days after receiving the project dossiers; if past the above-said time limit, they fail to give their written opinions, they shall be deemed to have approved the projects.

Article 5.-

1. Investment licenses shall be compiled according to a form set by the Ministry of Planning and Investment.

2. Within 7 working days after granting investment licenses or adjusted licenses, the Management Board shall send such investment licenses or adjusted licenses to the Ministry of Planning and Investment and the People's Committee of Quang Nam province (the originals), as well as the Ministry of Finance, the Ministry of Trade, ministries managing econo-technical branches and relevant State management agencies (copies).

Article 6.- For investment projects which the Management Board is not authorized to license, after receiving the project dossiers, the Management Board shall keep one dossier set (copies) and transfer all other documents, enclosed with its comments on the projects, to the Ministry of Planning and Investment for licensing registration according to the provisions of Articles 105 and 106 of the Government's Decree No. 24/2000/ND-CP of July 31, 2000, and supplemented and amended in Clauses 22 and 23, Article 1 of the Government's Decree No. 27/2003/ND-CP of March 19, 2003, or licensing appraisal according to the provisions of Articles 109 and 114 of Decree No. 24/2000/ND-CP of July 31, 2000, and amended and supplemented in Clause 26, Article 1 of the Government's Decree No. 27/2003/ND-CP of March 19, 2003.

Article 7.-

1. The Management Board shall guide investors in executing their projects and perform the State management over activities in Chu Lai Open Economic Zone according to the provisions of the Operation Regulation of Chu Lai Open Economic Zone, Quang Nam province, promulgated together with the Prime Minister's Decision No. 108/2003/QD-TTg of June 5, 2003; the Regulation on Industrial Parks, Export-Processing Zones and Hi-Tech Parks, issued together with the Government's Decree No. 36/CP of April 24, 1997, and law provisions on foreign investment.

2. The Management Board shall adjust the investment licenses for investment projects under its licensing competence within the authorized investment capital limit. The adjustment of investment licenses shall comply with the provisions of Articles 15, 16, 17, 18 and 19 of the Planning and Investment Ministry's Circular No. 12/2000/TT-BKH of September 15, 2000 guiding foreign investment activities in Vietnam.

3. Cases where the Management Board shall decide with the agreement of the Ministry of Planning and Investment:

a/ The investment capital amount exceeds the authorized limit due to adjustment of investment licenses; the objectives of the projects on the list of those subject to conditional investment are changed or added.

b/ The legal capital of the Vietnamese parties to joint ventures reduces, or joint ventures are transformed into enterprises with 100% foreign investment capital.

c/ Foreign-invested enterprises are dissolved or cooperation business contracts terminate ahead of time.

4. The Management Board shall decide on the dissolution of enterprises and withdraw investment licenses according to the current regulations.

Article 8.- Quarterly, biannually and annually, the Management Board shall sum up the grant and adjustment of investment licenses as well as activities of enterprises in Chu Lai Open Economic Zone under its management and send reports thereon to the Ministry of Planning and Investment and the People's Committee of Quang Nam province.

Article 9.- The Ministry of Planning and Investment shall create all favorable conditions and examine the performance of authorized tasks by the Management Board strictly according to regulations, and be answerable to law and the Government for the authorization prescribed in this Decision.

Article 10.- This Decision takes implementation effect fifteen days after its publication in the Official Gazette and replaces the Planning and Investment Minister's Decision No. 823/2003/QD-BKH of October 21, 2003 authorizing the Management Board of Chu Lai Open Economic Zone, Quang Nam province, to formulate projects; receive and appraise project dossiers; grant, adjust and withdraw investment licenses, and manage activities of foreign projects for investment in industrial parks and export-processing zones in Chu Lai Open Economic Zone.

Minister of Planning and Investment
VO HONG PHUC